Strengthening the link between research and innovation to promote regional growth and sustainability represents a policy priority in the United Kingdom (UK). However, while public R&D investment promises growth and competitiveness, regional disparities and evolving technological landscapes present challenges. To address this, tailored approaches fostering collaboration between public institutions and private firms – including Small Medium Enterprises (SMEs) - are essential to bridge the gap between research and innovation. By overcoming skill shortages, funding limitations, and regional inequalities, the UK can promote equitable innovation diffusion and drive sustainable growth across all regions.
This paper represents the second part of a larger research collaboration between the UK’s Department for Science, Innovation and Technology(DSIT) and the OECD on regional innovation diffusion in the UK, and follows part 1, “Econometric analysis of regional Public Sector Research and Development (R&D) Leverage Ratios”.
